Private equity

NovaQuest Private Equity is focused on partnering with management teams to build leading healthcare companies in the middle market. We look to transform market leaders into larger, better-positioned, more valuable enterprises. In many cases, we will utilize our strategic partners, Operating Advisory Board, and deep industry network to benefit our investments. Healthcare is a large and exciting sector, but it’s crucial to have the right partners to better navigate the growth curve.

Investment Criteria

 

NovaQuest Private Equity partners with management to accelerate growth in middle market healthcare companies. Below is a brief overview of the companies we target:

  • Investment sectors: Pharmaceutical, Medical Technology, Clinical / Outsourcing, Provider Services, Facility Services, Healthcare IT, among others
  • Financial characteristics
    • Revenue: $20-100 million annually
    • Market leaders with strong management teams
    • Cash flow positive (or high visibility to positive cash flow)
    • Enterprise value of up to $500 million
    • Multiple growth avenues: organic acceleration, acquisitions, new product lines, among others

 

Strategy


  • Approach

    Our goal is to partner with management to accelerate growth.

    HEALTHCARE EXPERTISE: NovaQuest is a specialized life science and healthcare investor. We develop thematic research to identify opportunities. In addition, we utilize our strategic partners, operating advisory board, and deep industry network for due diligence and value creation.

    TAILORED TRANSACTIONS: We structure transactions for owners staying with the business and seeking growth capital, owners transitioning complete ownership, corporations divesting assets, or financial sponsors exiting investments. Each situation is different, and our approach is customized for the transaction.


    TEAMWORK:
    We work in teams, allowing us to move quickly through the transaction process and continue supporting management throughout our investment. When making operating decisions, we work collaboratively to make data-driven, consensus-oriented decisions.

  • Philosophy

    Finding the right partnership is a crucial component of every investment.

    MANAGEMENT TEAMS AND ECONOMIC ALIGNMENT: We look to partner with management teams and strive to build value together. Each transaction is structured to ensure alignment with management.

    VALUE CREATION: We pursue multiple methods for value creation.

    CAPITAL STRUCTURE: While we may use leverage in a transaction, the amount of leverage is a function of the business strategy. We capitalize our investments so that management has the ability to execute the strategy and not be overly burdened with debt.

  • Value Creation

    We strive to add value in every portfolio company.

    STRATEGY DEVELOPMENT: We work with management to develop, refine, and enhance long-term strategies. We are focused on building great life science and healthcare companies that can thrive in today’s changing landscape and continue to grow after our ownership.

    REVENUE GROWTH: We help our management teams drive revenue growth and bring significant resources and experience to initiatives such as pricing optimization, sales force build-outs, and new product and service offerings.

    SYSTEM / PROCESS ENHANCEMENT AND OPERATIONAL EXPANSION: To accelerate growth, companies also need to scale systems and processes. We have deep experience to help with optimize systems, people, analysis, and processes. In addition, we have supported management teams with their organic and acquisition expansion programs.